BP stock shares lost 16% yesterday in New York trading and today, BP says it has no idea why the sharp selloff occurred. Company officials say BP is financially sound, even with the most recent cleanup costs estimated at $1.43 billion dollars.
BP continues to fall in European trading.
Maybe it’s just how horrible it all looks. Yesterday, BP’s Chief Operating Officer Doug Suttles denied there were any large plumes of oil floating underwater in the Gulf of Mexico, even though the National Atmospheric and Oceanic Administration measured underwater oil that escaped from the broken oil well.
Then President Obama criticized the energy company, saying he would have fired CEO Tony Hayward by now. Despite the bad press, analysts say BP is actually a good buy: The WSJ cites Citigroup analysts who say BP’s stock price is undervalued.